Research On The Sustainable Development Of Haikou Forest Farm In Kunming Based On Externality Theory

The Party and government of China attaches great importance to Problems of Reform and Development on National Forest Farm, Reform Program of National Forest Farm, which issued by the government in February 2015, clearly indicates the important strategic position of ecological protection of National Forest Farm, and also the targets and the directions to the reform. Yunnan province followed the pace of the country, issued a guidance on reform of National Forest Farms, and worked on organizing each of the National Forest Farms in Yunnan to establish a program on reform issue in April this year, but in general, no matter in notion or in action, is still somewhat conservative, which makes many National Forest Farms still do not figure out where to go.In this paper, which analyzing Kunming Haikou Forest Farm as a sample, making the system design of Kunming Haikou Forest Farm as a starting point, using the "internalization of externalities" theory to analyze the reform issue of Haikou Forest Farm, explaining the necessity and urgence of the reform, and also the resistance and power to the reform. Meanwhile, this paper points out externalities of Kunming Haikou Forest Farm, in what should be considered on reform. By comparing many successful models of National Forest Farms in other provinces, finding out the right way to reform for Haikou Forest Farm.:the first way is government solution, that using the "Pigou tax" to control resources management, according to system design, parting government and enterprise, to improving autonomy of Haikou Forest Farm; the second way is market solution, by using "Coase theorem" in market regulation, clarifying the management right and allowing the company to carry out business activities, through government procurement of public services, to explore business of Forest Tourist and Under-forest Economy, and to make sure every works play their roles in production, in order to inspire the largest energy of the farm, and to internalize the externality of it. Which means to elaborate make a greater efficiency of public property of national forest farms, and provide theoretical reference for the reform issues for all of the Forest Farms.